LONDON (Alliance News) - Edenville Energy PLC Thursday said it has formally been granted the mining licence for the Rukwa coal deposit in Tanzania.
The licence covers the resource at Mkomolo, which hosts the majority of Edenville's coal resource within the Rukwa coal deposit. The licence gives Edenville the exclusive right to search, dig, mine and process the coal from the 8.5 square kilometre area over the next ten years.
The licence states that Edenville must beginning development work at the site within the next three months, with "regular production" expected within 18 months.
Edenville said it will now look to sign a framework agreement to set out the milestones for a power purchase agreement with Tanzania Electric Supply Co Ltd, which plans to buy coal-to-power plants to serve the domestic market.
Edenville shares were trading up 0.2% to 0.0338 pence per share on Thursday.
By Joshua Warner; joshuawarner@alliancenews.com; @JoshAlliance
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